Mkango Magnetic Materials says German magnet plant gains EU strategic status
Mkango says its Pforzheim recycling plant is being commissioned with planned minimum initial capacity of about 100 tonnes of magnets and alloys a year.
Mara Quinlan
Mkango Magnetic Materials Ltd. LONMKA CVEMKA said on Friday that the European Commission designated its HyProMag GmbH magnet recycling project in Germany a Strategic Project under the Critical Raw Materials Act. According to Mkango's Oct. 9 release, the Pforzheim plant is being commissioned and is planned to have a minimum initial capacity of approximately 100 tonnes of magnets and alloys a year.
Mkango shares rose 12.12 per cent to C$0.74 in Toronto on Oct. 9, according to the CVEMKA Google Finance quote as of 4 p.m. EDT. The Commission's second EU selection added 46 projects under the act on Oct. 9.
The Commission's decision annex names HyProMag GmbH as promoter of an ongoing recycling project intended to supply rare earth elements for magnets. It lists the German project as item 20 of the Oct. 9 selection.
Mkango owned 79.4 per cent of Maginito as of its Oct. 9 release. Maginito had a 90 per cent direct and indirect interest in HyProMag GmbH on the assumption that its convertible loan is converted, so Mkango's interest in the German operation is indirect.
Mkango said operating multiple shifts could raise Pforzheim's annual capacity to approximately 350 tonnes, while a further expansion to 750 tonnes remains under evaluation. The company reported no current commercial output figure for Pforzheim while commissioning continues.
"The project promoted by HyProMag GmbH aims to contribute to the supply of rare earth elements for magnets," the European Commission said in its Oct. 9 annex.
The Hydrogen Processing of Magnet Scrap process was developed at the University of Birmingham and exclusively licensed to HyProMag, according to Mkango's technology page. It recovers magnets from used components and manufacturing scrap before converting them into demagnetized alloy powder.
HyProMag is engaging with multiple customers for NdFeB alloy powder and magnets, Mkango said on Oct. 9. The release does not disclose signed customer contracts, sales volumes or prices.
Pforzheim is the third Mkango-related project to gain strategic status, the company said. Its proposed Pulawy rare earth separation plant in Poland was selected in March 2025, while the Songwe Hill mine development project in Malawi followed in June 2025. The German designation applies to recycling rather than the mining and separation projects.
The Commission says its list now contains 106 strategic projects overall. Mkango's Oct. 9 announcement did not disclose new funding tied to Pforzheim's designation or give dates for the 350-tonne or 750-tonne expansions.
The next operational milestone is completion of commissioning at Pforzheim; Mkango's Oct. 9 release did not give a completion date.
